Question

How do you see these two theories (economic theory of Maynard Keynes and Adam Smith Theory) operating in today’s economy

Answer 1

competition keeps everyone honest, because customers treated unfairly by one business can always patronize another instead.(Adam Smith theory)

Keynes believed the government should support the economy. While Keynes generally endorsed free-market capitalism, the Depression’s unique challenges required unique solutions. Keynes argued that only the government had the resources to spend the money that individual consumers and businesses could not, and so break the cycle. (Kenyes theory applicable in the present day.)

Adam Smith and John Maynard Keynes are two of the most famous economists of all time. They are usually thought of as being diametrically opposed, but they did share one fundamental economic insight: Both understood that the key to economic prosperity is to keep the money circulating.